Morgans Hotel Group Plans to Expand Into Brazil and London, CEO Says

By Nadja Brandt -
May 10, 2011

Morgans Hotel Group Co. (MHGC), the New
York-based operator of boutique hotels including the Royalton
and Mondrian, plans to add properties in such places as Paris,
Brazil and London, Chief Executive Officer Michael Gross said.

“We want to be in key gateway cities, and we want to be
global,” Gross said in an interview. “We have good existing
penetration in the U.S. in some of the markets we’re in, but I
look at our footprint in Europe, such as London, and it is an
open slate for us.”

Morgans, which has been selling some properties and using
the proceeds to expand its management operations, plans to
target gateway cities in Europe and South America, Gross said.
The company said last month that it’s selling hotels in New York
and Los Angeles, which it will continue to run.

“Our asset sales have created financial flexibility,”
said Gross, who was appointed CEO in March. “Now that we’ve
sold these three properties, we have the luxury to really be
able to be patient and much more in control of our destiny.”

Morgans -- which also manages the Hudson hotel in New York,
the Delano South Beach in Miami and the Clift in San Francisco -
- will continue to pursue its “asset-light” strategy, Gross
said. The company is willing to acquire hotel stakes as part of
its expansion, he said.

In London, Morgans already operates the luxury St. Martins
Lane and Sanderson hotels.